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TheStreet's Jim Cramer notes that the "new pharma" stocks, such as Celgene (CELG) and Gilead (GILD), have pulled back significantly recently. Cramer notes that Celgene could earn $16 as early as 2017. He recommends the stock because it is selling for cheaper than Pfizer (PFE), Merck (MRK), Bristol-Myers Squibb (BMY) and Eli Lilly (LLY). Cramer is also unsure about the claim that Bristol-Myers has a better hepatitis C pill than Gilead and recommends the latter stock as a buy. Finally, he suggests Isis Pharmaceuticals (ISIS) and Seattle Genetics (SGEN), the latter of which could have the largest drug pipeline outside of the big four pharma stocks. Cramer recommends buying Seattle Genetics on any weakness.

NEW YORK (TheStreet) -- TheStreet's Jim Cramer notes that the "new pharma" stocks, such as Celgene (CELG) and Gilead (GILD), have pulled back significantly recently.

Cramer notes that Celgene could earn $16 as early as 2017. He recommends the stock because it is selling for cheaper than Pfizer (PFE), Merck (MRK), Bristol-Myers Squibb (BMY) and Eli Lilly (LLY).

Cramer is also unsure about the claim that Bristol-Myers has a better hepatitis C pill than Gilead and recommends the latter stock as a buy. Finally, he suggests Isis Pharmaceuticals (ISIS) and Seattle Genetics (SGEN), the latter of which could have the largest drug pipeline outside of the big four pharma stocks. Cramer recommends buying Seattle Genetics on any weakness.

---------- Separately, TheStreet Ratings team rates CELGENE CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CELGENE CORP (CELG) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

CELG's revenue growth has slightly outpaced the industry average of 14.9%. Since the same quarter one year prior, revenues rose by 21.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Biotechnology industry and the overall market, CELGENE CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

The gross profit margin for CELGENE CORP is currently very high, coming in at 96.51%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.21% trails the industry average.

Net operating cash flow has increased to $550.70 million or 12.29% when compared to the same quarter last year. Despite an increase in cash flow of 12.29%, CELGENE CORP is still growing at a significantly lower rate than the industry average of 64.51%.

Separately, TheStreet Ratings team rates GILEAD SCIENCES INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate GILEAD SCIENCES INC (GILD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

GILD's revenue growth has slightly outpaced the industry average of 14.9%. Since the same quarter one year prior, revenues rose by 20.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.

Compared to its closing price of one year ago, GILD's share price has jumped by 49.64%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GILD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.

The gross profit margin for GILEAD SCIENCES INC is currently very high, coming in at 75.91%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.36% is above that of the industry average.

GILEAD SCIENCES INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GILEAD SCIENCES INC increased its bottom line by earning $1.83 versus $1.64 in the prior year. This year, the market expects an improvement in earnings ($3.82 versus $1.83).